7 in 10 advisers expect their use of BPR to increase in the future

According to a report by Intelligent Partnership, 7 in 10 advisers reported that they expect their BPR business to increase over the next two years. Only 2 out of 190 survey respondents said they would decrease their use of BPR over the same period.

81% of advisers surveyed recommend BPR to their clients, similar to the results of last year’s survey.

IHT planning is by far the top reason for using BPR investments. Other reasons quoted include diversification (40%) and growth (28%). The number of advisers who cited growth as one of their top reasons increased this year which may indicate that advisers now view BPR not only as a way to mitigate IHT but also an asset class that can deliver capital appreciation.

When asked top criteria when selecting a BPR offer, 64% of advisers quoted transparency of underlying assets followed by provider reputation and performance history. Last year, provider reputation was the most cited criteria, and 10% fewer advisers than last year cited previous experience with provider as a criterion.

To a certain extent, it reflects that advisers are becoming less biased towards the biggest providers in the market at a time when many new players have entered the market – a healthy trend that maintains competition and gives advisers a wider range of investment options.

Jane Bligh at TWP Wealth commented: “Our clients also care about underlying investments and they often prefer investments that they can relate to.”

The full report can be downloaded here.

Key Findings:

  • Because of the rules and restrictions, research shows that only about 0.04% of the population of England and Wales will benefit from the Residence Nil Rate Band.
  • There is a growing number of AIM-listed BPR products in the market, contributing to approximately half of all open BPR investment opportunities.
  • Advisers have shown an increasing interest in underlying investments and manager track record.
  • Competition is increasing in the BPR market with many new entrants in the last two to three years.
  • The popularity of BPR is still growing with 68% of advisers seeing their use of BPR increasing over the next two years.

Benefits of Report:

After reviewing the report, readers will be able to:

  • Identify product offering trends in the BPR market
  • List the different advantages BPR qualifying investments have over other estate planning solutions
  • Identify the latest BPR offers, and describe how this year’s open BPR offers compare with previous years’ offers
  • Benchmark current BPR offers against each other and against previous years, based on key investment criteria
  • Interpret HMRC’s statistics on IHT – including IHT receipts, estate composition and the amount of BPR set against estates
  • Explain how the Residence Nil Rate Band works and the implications it has on IHT

To download your free copy of the report, please click here.